Home Depot is making pandemic benefits permanent wage increases
The largest American home improvement retailer – Home Depot reported Q3 2020 earnings that topped estimates.
In Q3, Home Depot reported a net income of $3.43 billion, the figures being 24% higher than those posted during Q3 2019. The actual figures also topped the $3.06 billion expected. At the same time, the revenues came in at $33.54 billion, ahead of the $32.04 billion forecasted.
Home Depot had an EPS of $3.18; the market was looking for $3.06. Due to the pandemic, people preferred online shopping, digital sales rising 80% year over year.
In the US, the same-store sales surged 24.6% in the past quarter.
The company's CEO, Craig Menear stated that the company had spent roughly $1.7 billion on temporary pay and benefits, and some of these compensations will turn into permanent wage increases. This change will add $1 billion in yearly expenses.
Moreover, Home Depot is looking to expand in the building utility and maintenance sector. It is in discussions to repurchase HD Supply Holdings for $8 billion after selling it in 2007 to Bain Capital.
Since the beginning of the year, Home Depot's stock price went up 28%.
Sources: cnbc.com, reuters.com